HBA-JEK C.S.H.B. 2435 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2435 By: Madden Elections 4/2/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, a candidate or officeholder can be supported or assisted by more than one specificpurpose political committee. This may make full disclosure of campaign contributions more difficult. C.S.H.B. 2435 requires a candidate or officeholder to establish a single principal political committee to manage all of the individual's political contributions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency or institution. ANALYSIS C.S.H.B. 2435 amends the Election Code to require a candidate or officeholder to designate in writing a political committee to serve as the person's principal political committee under which a candidate is required to maintain all political contributions. The bill sets forth provisions relating to the creation and duties of a principal political committee (Sec. 251.010). The bill provides that a candidate or officeholder is civilly liable for an act or omission by the person's principal political committee only if the person authorized, requested, commanded, performed, or recklessly or negligently tolerated the act or omission (Sec. 251.011). The bill requires a person who is a candidate or officeholder on September 1, 2001 to designate a principal political committee by September 15, 2001, and requires a candidate or officeholder to transfer each applicable asset to the committee by the 15th day after the date the candidate or officeholder designates a committee (SECTION 62). C.S.H.B. 2435 authorizes a candidate or officeholder to accept a political contribution in connection with the person's own candidacy or office only on behalf of the person's committee. The bill prohibits a candidate or officeholder from knowingly accepting a political contribution if the person's committee would be prohibited form accepting the contribution (Sec. 253.0311). The bill authorizes a candidate or officeholder to make a political contribution or expenditure from personal funds in connection with the person's own candidacy or office only by making a contribution to the person's committee (Sec. 253.0312). The bill prohibits the committee of a judicial or nonjudicial candidate or officeholder from using political contributions to reimburse a political contribution expenditure made to the committee from the candidate's or officeholder's personal funds in an aggregate amount that exceeds: _$500,000 for governor; _$250,000 for a statewide office other than governor; _$100,000 for statewide judicial office; or _five times the applicable contribution limit for a judicial office to which the Judicial Campaign Fairness Act applies, other than a statewide judicial office. The bill prohibits the committee of a nonjudicial candidate or officeholder from using political contributions to repay a loan or extension of credit from certain persons related to the candidate or officeholder in an aggregate amount that exceeds the limits above. The bill prohibits the committee of a judicial candidate or officeholder form using political contributions to repay any such loans or extensions of credit (Secs. 253.042 and 253.162). The bill repeals the provision requiring a candidate or officeholder to file a report after appointing a campaign treasurer (SECTION 61). EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2435 removes the provision in the original bill that prohibited a person from establishing a specific-purpose committee for supporting or opposing only one candidate or assisting only one officeholder (Sec. 251.001). The substitute also removes penalties for the unauthorized acceptance of a political contribution by a candidate or officeholder and for unauthorized contributions or expenditures from the personal funds of a candidate or officeholder (Secs. 253.0311 and 253.0312).